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AN ACT relating to the Kentucky Kindergarten Readiness Performance -Based 1
Child Care Incentive Pilot Program. 2
WHEREAS, providing performance -based in centives to diverse types of early 3
childhood education and child-care providers leads to the expansion of services across the 4
Commonwealth; and 5
WHEREAS, providing performance -based incentives to low -income parents of 6
children not receiving services from ea rly childhood education and child -care providers, 7
Head Start, or public Pre -K is a way to encourage parents to prepare their children for 8
kindergarten; and 9
WHEREAS, providing performance -based incentives increases the number of 10
children entering school kin dergarten ready, which positively impacts future educational 11
attainment; and 12
WHEREAS, providing performance -based incentives encourages early childhood 13
education and child -care providers to provide services for children with special needs; 14
and 15
WHEREAS, providing performance-based incentives would ensure positive growth 16
and improved quality of care for infant and toddler care programs; 17
NOW, THEREFORE, 18
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 19
SECTION 1. A NEW SECTION OF KRS CHAPTER 199 IS CREATED TO 20
READ AS FOLLOWS: 21
(1) As used in this section: 22
(a) "Cabinet" means the Cabinet for Health and Family Services; 23
(b) "Type I child-care center" means a child-care center licensed by the cabinet 24
to regularly provide child care services for: 25
1. Four (4) or more children in a nonresidential setting; or 26
2. Thirteen (13) or more children in a designated space separate from the 27
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primary residence of a licensee; 1
(c) "Type II child -care center" means a child -care center that is the primary 2
residence of the licensee in which child care is regularly provided for at 3
least seven (7) but not more than twelve (12) children, including children 4
related to the licensee; and 5
(d) "University" means the University of Kentucky. 6
(2) By August 1, 2026, the university shall establish and operate the Kentucky 7
Kindergarten Readiness Performance-Based Child Care Incentive Pilot Program, 8
which shall operate from August 1, 2027, until July 31, 2029. 9
(3) The pilot program shall: 10
(a) Determine how to provide performance -based incentives to diverse types of 11
early childhood education providers, child -care providers, and low -income 12
parents in order to increase the number of children in the Commonwealth 13
who are assessed as kindergarten ready; 14
(b) Determine how to best assess applicants and distribute moneys; 15
(c) Develop a written plan and implement assessment processes to determine 16
kindergarten readiness for children in the Commonwealth. The university 17
shall convene a working group to assist in the development of the written 18
plan and assessment processes; 19
(d) Ensure that participants in the pilot program represent geographically and 20
socioeconomically diverse areas of the Commonwealth; 21
(e) Evaluate the impact of perfo rmance-based incentives implemented through 22
the pilot program using a rigorous design framework that supports causal 23
inferences; 24
(f) Design, identify, and make available resources for parents to assist them in 25
preparing children for kindergarten readiness; 26
(g) Determine how to award funds, including but not limited to direct payments 27
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or refundable tax credits, to licensed Type I and Type II child -care centers; 1
cabinet-regulated early childhood education providers, certified child -care 2
homes, and registered providers; and single or married parents who qualify 3
for the child -care subsidy administered by the cabinet pursuant to KRS 4
199.8994. To be eligible for funds: 5
1. A provider or a home shall maintain services for infants and toddlers 6
at a ratio established by the Division of Child Care within the cabinet; 7
2. A provider or a home shall maintain and submit accurate and detailed 8
records of care for any child; and 9
3. A parent shall submit records to verify he or she meets the 10
requirements to receive child care subsidy funds under KRS 199.8994; 11
(h) Establish a standard for awarding a two thousand dollar ($2,000) one (1) 12
time award, including but not limited to direct payments or refundable tax 13
credits, per child once a child is designated by the assessment proces ses as 14
kindergarten ready as follows: 15
1. A full award to a licensed Type I or Type II child -care center or 16
cabinet-regulated early childhood education provider, certified child -17
care home, or registered provider who meets the requirements of 18
paragraph (g) o f this subsection if the kindergarten -ready child 19
received full-time services from the center or provider the two (2) years 20
prior to the assessment; 21
2. A full award to a single or married parent who meets the requirements 22
of paragraph (g) of this subsection if the kindergarten-ready child was 23
cared for in the home the two (2) years prior to the assessment, 24
regardless of the utilization of a babysitter; 25
3. A full award to a licensed Type I or Type II child -care center or 26
cabinet-regulated early childhood edu cation provider, certified child -27
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care home, or registered provider who meets the requirements of 1
paragraph (g) of this subsection if the child cannot be properly 2
assessed as a kindergarten -ready child because of a formal diagnosis 3
of a disability and the c hild received full -time services from the 4
provider the two (2) years prior to the assessment; 5
4. A half award to a licensed Type I or Type II child -care center or 6
cabinet-regulated early childhood education provider, certified child -7
care home, or registere d provider who meets the requirements of 8
paragraph (g) of this subsection if the kindergarten -ready child 9
received half -day services from the center and attended public 10
preschool the two (2) years prior to the assessment; and 11
5. Split awards may be granted to individuals or providers based on who 12
provided full-time services or cared for the child in the two (2) years 13
prior to the assessment; and 14
(i) Ensure compliance with federal regulations, including but not limited to the 15
Quality Rating and Improvement Systems as established under 45 C.F.R. pt. 16
98. 17
(4) By January 1, 2030, the university shall submit a report to the cabinet and the 18
Legislative Research Commission for referral to the Interim Joint Committees on 19
Families and Children, Education, and Appropriations and Revenue that: 20
(a) Details the findings of the pilot program; 21
(b) If the pilot program proves successful: 22
1. Identifies specific mechanisms for change, including but not limited to 23
educational curricula and family pract ices to best prepare preschool -24
age children for kindergarten readiness; 25
2. Includes recommendations based on the pilot program's results for 26
optimizing performance -based child care incentives in the 27
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Commonwealth; and 1
3. Includes recommendations and potenti al obstacles for implementing 2
the program at scale; 3
(c) Details the assessment processes used to determine kindergarten readiness; 4
(d) Identifies the rates of kindergarten readiness at the end of the pilot 5
program; and 6
(e) Includes all data generated from the pilot program, which shall be made 7
available for public review and use in accordance with applicable federal, 8
state, and institutional review board policies. 9